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Basic metals and fabricated metal products

8 pages
Industry, trade and services
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in focus
Author Petra Sneijers
C o n t e n t s Value-added and employment: high weight of ‘fabricated metal products’.................................... 2Wage adjusted productivity: Latvian level noticeably high ... 3R&D expenditure: Austria and Finland lead in the EU .............. 5Trade performance: Surplus for basic metals, deficit for metal products..................................... 6
Manuscript completed on: 10.11.2004 ISSN 1561-4840 Catalogue number: KS-NP-04-050-EN-N © European Communities, 2004
Basic metals and fabricated
metal products
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The metal industry highlighted in this publication is composed of two main divisions: the manufacture of basic metals (NACE Rev. 1, division 27) and the manufacture of fabricated metal products, except machinery and equipment (division 28). Within division 27, the following sectors are covered: Basic iron and steel and ferro-alloys (NACE group 27.1), Tubes (27.2), Other first processing of iron and steel (27.3), Basic precious and non-ferrous metals (27.4) and finally the Casting of metals (27.5). With regards to division 28, the following sectors are included: Structural metal products (NACE group 28.1), Tanks, reservoirs and containers of metal (28.2), Steam generators (28.3), Forging, pressing, stamping and roll forming of metal (28.4), Treatment and coating of metals (28.5), Cutlery, tools and general hardware (28.6) and finally Other fabricated metal products (28.7). The production of basic metals requires a relatively heavy industrial infrastructure and equipment, often quite different from the manufacturing infrastructure needed for the manufacture of fabricated metal products. It then comes as no surprise that far more enterprises are registered in the division ‘Fabricated metal products’ (NACE 28) than ‘Basic metals’ (NACE 27). Graph 1: Share of metal industry (NACE division 2 nd 28) in the total of manufacturing industries in 2001, by EU Member States in % 32% 31%
Value added
For Poland and Slovenia, employment is based on the number of employees instead of persons employed. Source: Eurostat, SBS. At EU-level, the metal industry contributes over 14 % to the total employment in the manufacturing industries and has a share in value-added of about one eighth (12.6 %). The high importance of the metal industry in Luxembourg, both for value-added and for employment should be mentioned, due to the presence of a large manufacturer: it contributes for over 30 % to the entire manufacturing section, a share more than twice the EU average.A comparison between the share of employment and value added shows similar levels within the metal industry subsections; in two EU countries the overall shares are less equally spread: in Slovakia, the value-added share is clearly more significant than the share in employment, whereas the opposite is true for Finland and especially Ireland and Poland.
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